Fonciere Inea (INEA) H2 2024 earnings summary

Executive summary

• EBITDA up 16% and recurring net income (RNR) up 4.4% in 2024, marking a second consecutive year of double-digit EBITDA growth.

• Strong rental income growth (+15.5% year-over-year), driven by both like-for-like (+6.9%) and new asset deliveries.

• Portfolio value stable over two years (-2%), with high environmental performance: energy use 32% below national average.

• Proposed dividend of €2.70 per share, yielding 8.2%, with payout ratio of 87% on cash flow.

Financial highlights

• Gross rental income: €78.0M (+16% vs. 2023); EBITDA: €48.7M (+16%); Recurring net income: €26.5M (+4.4%).

• Cash flow per share: €3.1 (-2%); EPRA NTA: €50.2/share (-6.4%).

• Net asset value (NTA) per share remains above €50; share price at year-end €33, a 34% discount to NTA.

• EPRA net initial yield: 5.6%; topped-up yield: 5.8%; potential yield at full occupancy: 7.5%.

• EPRA cost ratio (excl. vacancy): 9.4% (improved by 17 bps); financial cost ratio (ICR): 2.7.

Outlook and guidance

• 2025 guidance: cash flow per share expected to rise by at least 10%, supported by new asset deliveries, continued (but slower) indexation, lower interest rates, and asset rotation.

• Positive operational outlook with further growth anticipated as the last pipeline assets are delivered.